#1 I think that right now tariffs are seen by the administration as a way to help the budget deficit, however, a poor one as many have pointed out. In reality, to plug the gap from the tax cuts they need to look at real cuts in government spending.
#2 There is some concern about making China as the bad player in this trade war, however, it is already too apparent that the US is the one calling the shots. Also China is expanding, not contracting its global footprint which is a concern to US competitiveness. Also, as many have pointed out, China's manufacturing is under long term decline anyways as SE Asia is more cost competitive and will be more able to deal with manufacturing as time goes on like Japan was vs. the US in the past, then Taiwan, Hong Kong, and Korea was to Japan in the past, and China was to Taiwan, Hong Kong, and Korea. Now Vietnam, Cambodia, Thailand, the Philippines, and Malaysia are the treats to China and is why China is getting so aggressive in the Pacific Ocean. The US is a symptom of a wider problem for China and the US fighting vs. China over manufacturing is like fighting the last manufacturing war instead of looking at the future global battleground. It is diverting attention to the wrong issue. The issue is the constant manufacturing movement to the lowest cost labor with the lowest environmental laws.
To counter this, automation will help, as well as global regulations on environmental manufacturing.
#3 The last scary issue is China is quickly realizing its need to move to a higher end economy and is producing more and more patents and innovation. China does need to protect patents better for its own future sake. This will happen naturally. Also China needs to open up its freedom of information to enable creativity and a more global landscape, however, Facebook incidents and Russian hacking have shown even the US the potential for misuse. There needs to be discussion on this topic, however, government information control ends up hurting China's economy in the long run by it stymieing global competitiveness and creativity.
#4 The lack of China allowing for the free trade of its currency also hurts its potential to be a global financial leader. It is making small advances on this. Right now China is trying to keep its currency up, not push it down. This is at contradiction to claims its playing currency manipulation games and most people realize this. Once again, helping China be open to free currency helps China more than it hurts it.
#5 Last, demonizing China isn't that good if you plan on running a continuing deficit and depend on it for so much trade that obviously America wants even with trade tariffs. To move forward on this is a bit silly given Americans will realize quite rapidly how much they depend on China to keep their standard of living. The US essentially has been exporting not only its deficits but also its inflation. If the US stops imports it will quickly realize how much inflation its deficit spending really causes and it will become frightening rapidly. Republicans by and large realize our trading partners are partners and not enemies. Let us hope clearer minds will prevail for our sake.
In terms of market share, they are already #1 in revenue. Based on reported growth rates, they overtook Cisco security earlier this year.
In terms of platform leadership, CheckPoint, Cisco, Fortinet will of course argue theirs is the best offering. But billing trends are saying loudly that customers are choosing Palo Alto and Fortinet. Of the two, we believe Palo Alto has the most complete platform.
The only way inflation picks up is commodity inflation for basic things which is not good, its bad. That is because the other ways inflation picks up are dead in the water. These are 1) People making more and spending more and/or more people making more which is not happening. 2) People borrowing more which is hard to do without #1 and isn't happening 3) The government spending more or taking less which is rumored but hasn't happened and 4) events that cause natural shortages and price run ups (fortunately none big enough to cause mass inflation across the board has happened) and 5) Some Federal Reserve insanity which I think the Federal Reserve is already up to its eyeballs with QE.
It was a huge shock to me to find out that North America was not #1 in GGY, but it was in fact Asia/Middle East. I was always under the impression that North America was the number one in GGY by a land slide!
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#1 I think that right now tariffs are seen by the administration as a way to help the budget deficit, however, a poor one as many have pointed out. In reality, to plug the gap from the tax cuts they need to look at real cuts in government spending. #2 There is some concern about making China as the bad player in this trade war, however, it is already too apparent that the US is the one calling the shots. Also China is expanding, not contracting its global footprint which is a concern to US competitiveness. Also, as many have pointed out, China's manufacturing is under long term decline anyways as SE Asia is more cost competitive and will be more able to deal with manufacturing as time goes on like Japan was vs. the US in the past, then Taiwan, Hong Kong, and Korea was to Japan in the past, and China was to Taiwan, Hong Kong, and Korea. Now Vietnam, Cambodia, Thailand, the Philippines, and Malaysia are the treats to China and is why China is getting so aggressive in the Pacific Ocean. The US is a symptom of a wider problem for China and the US fighting vs. China over manufacturing is like fighting the last manufacturing war instead of looking at the future global battleground. It is diverting attention to the wrong issue. The issue is the constant manufacturing movement to the lowest cost labor with the lowest environmental laws. To counter this, automation will help, as well as global regulations on environmental manufacturing. #3 The last scary issue is China is quickly realizing its need to move to a higher end economy and is producing more and more patents and innovation. China does need to protect patents better for its own future sake. This will happen naturally. Also China needs to open up its freedom of information to enable creativity and a more global landscape, however, Facebook incidents and Russian hacking have shown even the US the potential for misuse. There needs to be discussion on this topic, however, government information control ends up hurting China's economy in the long run by it stymieing global competitiveness and creativity. #4 The lack of China allowing for the free trade of its currency also hurts its potential to be a global financial leader. It is making small advances on this. Right now China is trying to keep its currency up, not push it down. This is at contradiction to claims its playing currency manipulation games and most people realize this. Once again, helping China be open to free currency helps China more than it hurts it. #5 Last, demonizing China isn't that good if you plan on running a continuing deficit and depend on it for so much trade that obviously America wants even with trade tariffs. To move forward on this is a bit silly given Americans will realize quite rapidly how much they depend on China to keep their standard of living. The US essentially has been exporting not only its deficits but also its inflation. If the US stops imports it will quickly realize how much inflation its deficit spending really causes and it will become frightening rapidly. Republicans by and large realize our trading partners are partners and not enemies. Let us hope clearer minds will prevail for our sake.
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Thanks for the comment, David.
In terms of market share, they are already #1 in revenue. Based on reported growth rates, they overtook Cisco security earlier this year.
In terms of platform leadership, CheckPoint, Cisco, Fortinet will of course argue theirs is the best offering. But billing trends are saying loudly that customers are choosing Palo Alto and Fortinet. Of the two, we believe Palo Alto has the most complete platform.
US Core Inflation Stuck At 1.7% Again – USD Falls Across The Board
The only way inflation picks up is commodity inflation for basic things which is not good, its bad. That is because the other ways inflation picks up are dead in the water. These are 1) People making more and spending more and/or more people making more which is not happening. 2) People borrowing more which is hard to do without #1 and isn't happening 3) The government spending more or taking less which is rumored but hasn't happened and 4) events that cause natural shortages and price run ups (fortunately none big enough to cause mass inflation across the board has happened) and 5) Some Federal Reserve insanity which I think the Federal Reserve is already up to its eyeballs with QE.
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OK, please do tell some resources for #7. Also, how does #1 work?
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It was a huge shock to me to find out that North America was not #1 in GGY, but it was in fact Asia/Middle East. I was always under the impression that North America was the number one in GGY by a land slide!